Japan Inc. is pushing back after years of pressure to give bigger pay raises that has been a key part of Prime Minister Shinzo Abe's campaign to restore stable economic growth.
While wages have never reached the level sought by Abe, the results from annual wage talks to be released later this week are expected to show even smaller gains after the chief of Keidanren, the nation's largest business lobby, suggested the government mind its own business.
Higher pay that can drive a cycle of stronger consumption and price growth has been viewed as key to the success of Abenomics. That's particularly critical this year, with a demand-sapping sales-tax increase scheduled for October.
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